Finns are adjusting to a higher retirement

Finns now consider 65 to 66 years the suitable statutory age for retirement. The figure has risen from 63-64 a year ago. Half of Finns believe they will continue to work until the official retirement age. Only one-third believe that the statutory pension provided by the national pension scheme will provide adequate security. An increasing number of people consider it necessary to independently prepare for retirement financially.

According to a survey commissioned by Nordea from Taloustutkimus Oy, Finns consider the appropriate retirement age to be 65 or 66. In a similar survey one year ago, the figure was 63-64 years. The Finnish pension reform that will come into force in 2017 will raise the statutory age of retirement from 63 to 65.

- It seems Finns are adjusting to the notion of a higher age for retirement. The pension reform may have influenced views on the matter. Young people should, however, remember that going forward, retirement age will be tied to life expectancy. Thus for Finns turning thirty this year, the target age for retirement will actually be 70, says Olli Kärkkäinen, Private Economist at Nordea.

Faith in the statutory pension scheme is waveringNearly 70 percent of Finns do not believe their statutory pension will be enough to secure their retirement years. Faith in the statutory pension scheme has clearly eroded among Finnish men over the past year. Now only 23 percent of men expect their statutory pension to be sufficient, which represents a decrease of 8 percentage points on last year.

- The purpose of the national pension scheme is to guarantee a reasonable standard of living also after retirement. However, it would seem Finns do not trust that their statutory pension alone will be enough for them to live as they wish once they have retired, notes Kärkkäinen.

- There is a distinct generational gap in how people perceive the sufficiency of the security provided by the statutory pension scheme. While amongst the 50 to 60 year olds, four-in-ten trust that the statutory pension will provide sufficient security to upcoming generations, among the under 50s, the view is shared by just one-in-three people, notes Risto Kuoppamäki from Nordea's asset management.

Saving 50 to 200 euros per month towards retirementAn increasing number of Finns are prepared to complement their statutory pension with additional savings. Almost 90 percent of young people consider it necessary to independently prepare for retirement financially, while the corresponding figure for people over 50 is 76 percent.

- In reality, only half of the people who responded to the survey have prepared to independently contribute towards financing their retirement days. People typically prepare for retirement by saving money on their account or by investing in funds, stocks or some pension saving scheme. Finns usually save between 50 and 200 euros a month towards retirement. Things Finnish people would do without, if necessary, once they have retired include travel and acquisitions for the home, says Kuoppamäki.

The pension survey reviewed attitudes among Finns regarding the pension reform and retirement age. The survey was conducted as an internet panel in March. A total of 1,034 working people between the ages of 23 and 65 responded to the survey.